Financial Fraud Against The Corporation

1035 WordsOct 16, 20155 Pages
premature determination of revenue are by far the most common fraud against the corporation (p.4) Facts and Statistics on Financial Fraud and Embezzlement According to Mitric, Stankovic, and Lakicevic, (2012) financial fraud and embezzlement are clearly two distinct configuration, however share several common characteristics and qualities. Mitric et al. also indicated that company top executives and managers or owners normally are responsible for putting its own company in financial troubles and damaging its organization’s reputation (p.44). Mitric et al. (2012) detailed Studies show that the fraud committed by owners or executives causes three times more damage than the fraud committed by ordinary managers, and more than nine times greater damage compared to the frauds committed by general staff. Frauds committed by managers or owners, take more time to be discovered (p.44). Mitric et al. (2012) summarized More than 87% of fraud perpetrators had never been charged or convicted of any fraudulent practices. Fraud perpetrators often display warning signs that they are likely to engage in illegal activities. The most common signs imply living beyond their means (36% of cases) and experiencing financial difficulties (27% of cases) (p.45). Common Financial Fraud Schemes According to Ahmad et al (2013), most of the financial statement fraud was engineered and perpetrated by prematurely and fictitiously recognizing revenue, these schemes were enacted through channel
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